Correlation Between Delek and Safe T
Can any of the company-specific risk be diversified away by investing in both Delek and Safe T at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Delek and Safe T into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Group and Safe T Group, you can compare the effects of market volatilities on Delek and Safe T and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Delek with a short position of Safe T. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek and Safe T.
Diversification Opportunities for Delek and Safe T
Very good diversification
The 3 months correlation between Delek and Safe is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Delek Group and Safe T Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safe T Group and Delek is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Delek Group are associated (or correlated) with Safe T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safe T Group has no effect on the direction of Delek i.e., Delek and Safe T go up and down completely randomly.
Pair Corralation between Delek and Safe T
Assuming the 90 days trading horizon Delek is expected to generate 6.41 times less return on investment than Safe T. But when comparing it to its historical volatility, Delek Group is 2.83 times less risky than Safe T. It trades about 0.04 of its potential returns per unit of risk. Safe T Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 11,360 in Safe T Group on August 25, 2024 and sell it today you would earn a total of 37,040 from holding Safe T Group or generate 326.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Group vs. Safe T Group
Performance |
| Timeline |
| Delek Group |
| Safe T Group |
Delek and Safe T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek and Safe T
The main advantage of trading using opposite Delek and Safe T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek position performs unexpectedly, Safe T can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Safe T will offset losses from the drop in Safe T's long position.| Delek vs. Atreyu Capital Markets | Delek vs. IBI Inv House | Delek vs. Delek Automotive Systems | Delek vs. Scope Metals Group |
| Safe T vs. Arad Investment Industrial | Safe T vs. Unet Credit Finance | Safe T vs. Hiron Trade Investments Industrial | Safe T vs. Meitav Trade Inv |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
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